(RTO) Rentokil Initial - Overview
Exchange: NYSE •
Country: United Kingdom •
Currency: USD •
Type: Common Stock •
ISIN: US7601251041
Stock: Pest Control, Hygiene, Garments, Cleaning
Total Rating 45
Risk 29
Buy Signal -0.39
| Risk 5d forecast | |
|---|---|
| Volatility | 36.2% |
| Relative Tail Risk | -12.9% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 1.08 |
| Alpha | 28.80 |
| Character TTM | |
|---|---|
| Beta | 0.854 |
| Beta Downside | 1.378 |
| Drawdowns 3y | |
|---|---|
| Max DD | 49.81% |
| CAGR/Max DD | -0.03 |
Description: RTO Rentokil Initial March 04, 2026
Rentokil Initial PLC (RTO) is a UK-based company providing route-based services globally. Its primary operations are pest control, hygiene, and specialist cleaning services. Route-based services are common in facility management.
Pest control services address rodents, insects, and wildlife. Hygiene services include maintenance of dispensers for soap, hand sanitizer, and air care products. The company also supplies and launders commercial garments.
Specialist cleaning services encompass graffiti removal, deep cleaning for kitchens and washrooms, trauma cleaning, and remediation for flood or fire damage. The facilities services sector often involves recurring revenue contracts.
For more detailed financial analysis and performance metrics, ValueRay offers comprehensive insights.
Headlines to watch out for
- Pest control demand drives revenue growth globally
- Hygiene services contracts provide recurring income
- Economic downturns reduce demand for discretionary services
- Regulatory changes impact pest control product efficacy
- Labor costs and fuel prices affect service profitability
Piotroski VR‑10 (Strict, 0-10) 5.5
| Net Income: 703.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 3.10 > 1.0 |
| NWC/Revenue: 3.54% < 20% (prev 1.43%; Δ 2.11% < -1%) |
| CFO/TA 0.14 > 3% & CFO 1.52b > Net Income 703.5m |
| Net Debt (2.83b) to EBITDA (2.16b): 1.31 < 3 |
| Current Ratio: 1.16 > 1.5 & < 3 |
| Outstanding Shares: last quarter (507.5m) vs 12m ago 0.41% < -2% |
| Gross Margin: 13.53% > 18% (prev 0.64%; Δ 1.29k% > 0.5%) |
| Asset Turnover: 104.6% > 50% (prev 74.20%; Δ 30.39% > 0%) |
| Interest Coverage Ratio: 3.78 > 6 (EBITDA TTM 2.16b / Interest Expense TTM 383.3m) |
Altman Z'' 3.97
| A: 0.04 (Total Current Assets 2.86b - Total Current Liabilities 2.46b) / Total Assets 10.71b |
| B: 0.67 (Retained Earnings 7.20b / Total Assets 10.71b) |
| C: 0.13 (EBIT TTM 1.45b / Avg Total Assets 10.92b) |
| D: 0.61 (Book Value of Equity 4.06b / Total Liabilities 6.63b) |
| Altman-Z'' Score: 3.97 = AA |
Beneish M 0.34
| DSRI: 0.71 (Receivables 867.6m/880.0m, Revenue 11.42b/8.26b) |
| GMI: 4.77 (GM 13.53% / 64.50%) |
| AQI: 0.98 (AQ_t 0.66 / AQ_t-1 0.67) |
| SGI: 1.38 (Revenue 11.42b / 8.26b) |
| TATA: -0.08 (NI 703.5m - CFO 1.52b) / TA 10.71b) |
| Beneish M-Score: 0.34 (Cap -4..+1) = D |
What is the price of RTO shares?
As of March 21, 2026, the stock is trading at USD 30.82 with a total of 1,674,853 shares traded.
Over the past week, the price has changed by -4.70%, over one month by -3.69%, over three months by +2.26% and over the past year by +40.79%.
Over the past week, the price has changed by -4.70%, over one month by -3.69%, over three months by +2.26% and over the past year by +40.79%.
Is RTO a buy, sell or hold?
Rentokil Initial has received a consensus analysts rating of 4.00.
Therefore, it is recommended to buy RTO.
- StrongBuy: 1
- Buy: 2
- Hold: 1
- Sell: 0
- StrongSell: 0
What are the forecasts/targets for the RTO price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 35.8 | 16.1% |
| Analysts Target Price | 35.8 | 16.1% |
RTO Fundamental Data Overview March 16, 2026
P/E Trailing = 56.7368
P/E Forward = 19.4175
P/S = 2.408
P/B = 2.9613
P/EG = 0.9558
Revenue TTM = 11.42b USD
EBIT TTM = 1.45b USD
EBITDA TTM = 2.16b USD
Long Term Debt = 4.18b USD (from longTermDebt, two quarters ago)
Short Term Debt = 1.17b USD (from shortTermDebt, last quarter)
Debt = 4.55b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.83b USD (from netDebt column, last quarter)
Enterprise Value = 19.46b USD (16.63b + Debt 4.55b - CCE 1.72b)
Interest Coverage Ratio = 3.78 (Ebit TTM 1.45b / Interest Expense TTM 383.3m)
EV/FCF = 16.69x (Enterprise Value 19.46b / FCF TTM 1.17b)
FCF Yield = 5.99% (FCF TTM 1.17b / Enterprise Value 19.46b)
FCF Margin = 10.21% (FCF TTM 1.17b / Revenue TTM 11.42b)
Net Margin = 6.16% (Net Income TTM 703.5m / Revenue TTM 11.42b)
Gross Margin = 13.53% ((Revenue TTM 11.42b - Cost of Revenue TTM 9.88b) / Revenue TTM)
Gross Margin QoQ = 13.88% (prev 13.53%)
Tobins Q-Ratio = 1.82 (Enterprise Value 19.46b / Total Assets 10.71b)
Interest Expense / Debt = 2.16% (Interest Expense 98.3m / Debt 4.55b)
Taxrate = 27.59% (35.5m / 128.7m)
NOPAT = 1.05b (EBIT 1.45b * (1 - 27.59%))
Current Ratio = 1.16 (Total Current Assets 2.86b / Total Current Liabilities 2.46b)
Debt / Equity = 1.12 (Debt 4.55b / totalStockholderEquity, last quarter 4.08b)
Debt / EBITDA = 1.31 (Net Debt 2.83b / EBITDA 2.16b)
Debt / FCF = 2.42 (Net Debt 2.83b / FCF TTM 1.17b)
Total Stockholder Equity = 4.44b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.44% (Net Income 703.5m / Total Assets 10.71b)
RoE = 15.86% (Net Income TTM 703.5m / Total Stockholder Equity 4.44b)
RoCE = 16.83% (EBIT 1.45b / Capital Employed (Equity 4.44b + L.T.Debt 4.18b))
RoIC = 11.61% (NOPAT 1.05b / Invested Capital 9.04b)
WACC = 7.45% (E(16.63b)/V(21.18b) * Re(9.06%) + D(4.55b)/V(21.18b) * Rd(2.16%) * (1-Tc(0.28)))
Discount Rate = 9.06% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.21%
[DCF] Terminal Value 83.07% ; FCFF base≈1.05b ; Y1≈1.29b ; Y5≈2.20b
[DCF] Fair Price = 77.40 (EV 41.78b - Net Debt 2.83b = Equity 38.95b / Shares 503.2m; r=7.45% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: -27.63 | EPS CAGR: 0.0% | SUE: 0.0 | # QB: 0
Revenue Correlation: 79.64 | Revenue CAGR: 52.48% | SUE: N/A | # QB: 0
EPS current Year (2026-12-31): EPS=1.44 | Chg7d=-0.007 | Chg30d=-0.017 | Revisions Net=-1 | Growth EPS=+11.8% | Growth Revenue=+4.8%
EPS next Year (2027-12-31): EPS=1.65 | Chg7d=+0.030 | Chg30d=+0.021 | Revisions Net=-1 | Growth EPS=+14.4% | Growth Revenue=+4.4%
[Analyst] Revisions Ratio: -1.00 (0 Up / 1 Down within 30d for Current Year)
[Growth] Implied Growth Rate = 7.3% (Discount Rate 9.1% - Earnings Yield 1.8%)
[Growth] Growth Spread = -2.9% (Analyst 4.4% - Implied 7.3%)
P/E Forward = 19.4175
P/S = 2.408
P/B = 2.9613
P/EG = 0.9558
Revenue TTM = 11.42b USD
EBIT TTM = 1.45b USD
EBITDA TTM = 2.16b USD
Long Term Debt = 4.18b USD (from longTermDebt, two quarters ago)
Short Term Debt = 1.17b USD (from shortTermDebt, last quarter)
Debt = 4.55b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 2.83b USD (from netDebt column, last quarter)
Enterprise Value = 19.46b USD (16.63b + Debt 4.55b - CCE 1.72b)
Interest Coverage Ratio = 3.78 (Ebit TTM 1.45b / Interest Expense TTM 383.3m)
EV/FCF = 16.69x (Enterprise Value 19.46b / FCF TTM 1.17b)
FCF Yield = 5.99% (FCF TTM 1.17b / Enterprise Value 19.46b)
FCF Margin = 10.21% (FCF TTM 1.17b / Revenue TTM 11.42b)
Net Margin = 6.16% (Net Income TTM 703.5m / Revenue TTM 11.42b)
Gross Margin = 13.53% ((Revenue TTM 11.42b - Cost of Revenue TTM 9.88b) / Revenue TTM)
Gross Margin QoQ = 13.88% (prev 13.53%)
Tobins Q-Ratio = 1.82 (Enterprise Value 19.46b / Total Assets 10.71b)
Interest Expense / Debt = 2.16% (Interest Expense 98.3m / Debt 4.55b)
Taxrate = 27.59% (35.5m / 128.7m)
NOPAT = 1.05b (EBIT 1.45b * (1 - 27.59%))
Current Ratio = 1.16 (Total Current Assets 2.86b / Total Current Liabilities 2.46b)
Debt / Equity = 1.12 (Debt 4.55b / totalStockholderEquity, last quarter 4.08b)
Debt / EBITDA = 1.31 (Net Debt 2.83b / EBITDA 2.16b)
Debt / FCF = 2.42 (Net Debt 2.83b / FCF TTM 1.17b)
Total Stockholder Equity = 4.44b (last 4 quarters mean from totalStockholderEquity)
RoA = 6.44% (Net Income 703.5m / Total Assets 10.71b)
RoE = 15.86% (Net Income TTM 703.5m / Total Stockholder Equity 4.44b)
RoCE = 16.83% (EBIT 1.45b / Capital Employed (Equity 4.44b + L.T.Debt 4.18b))
RoIC = 11.61% (NOPAT 1.05b / Invested Capital 9.04b)
WACC = 7.45% (E(16.63b)/V(21.18b) * Re(9.06%) + D(4.55b)/V(21.18b) * Rd(2.16%) * (1-Tc(0.28)))
Discount Rate = 9.06% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 0.21%
[DCF] Terminal Value 83.07% ; FCFF base≈1.05b ; Y1≈1.29b ; Y5≈2.20b
[DCF] Fair Price = 77.40 (EV 41.78b - Net Debt 2.83b = Equity 38.95b / Shares 503.2m; r=7.45% [WACC]; 5y FCF grow 25.0% → 2.90% )
EPS Correlation: -27.63 | EPS CAGR: 0.0% | SUE: 0.0 | # QB: 0
Revenue Correlation: 79.64 | Revenue CAGR: 52.48% | SUE: N/A | # QB: 0
EPS current Year (2026-12-31): EPS=1.44 | Chg7d=-0.007 | Chg30d=-0.017 | Revisions Net=-1 | Growth EPS=+11.8% | Growth Revenue=+4.8%
EPS next Year (2027-12-31): EPS=1.65 | Chg7d=+0.030 | Chg30d=+0.021 | Revisions Net=-1 | Growth EPS=+14.4% | Growth Revenue=+4.4%
[Analyst] Revisions Ratio: -1.00 (0 Up / 1 Down within 30d for Current Year)
[Growth] Implied Growth Rate = 7.3% (Discount Rate 9.1% - Earnings Yield 1.8%)
[Growth] Growth Spread = -2.9% (Analyst 4.4% - Implied 7.3%)